Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
The Machine (i.e. the market) doesn’t care about what you or I “feel” or “see.” It’s a discounting mechanism for the future. If you have a modern risk management #process to score it in terms of Sector & Factor Exposures, it’s obvious.
What Sector Styles drove the US stock market (SPY) to its 56th all-time closing high of 2021 yesterday?
A) #Quad2 Overweight, Consumer Discretionary (XLY) was +2.5% on the day to +10.1% for #Quad2 in Q4